Ban will prevent refiners buying insurance in London market

A pending EU ban on insuring tankers carrying Iranian crude oil has caused oil exports from Iran to plummet, the Financial Times reports.

The ban, due to come into force on 1 July, will prevent refiners from buying protection and indemnity (P&I) marine insurance in the London market.

Oil traders quoted in the paper said the ban will be felt in Asia particularly, and could force South Korea, Singapore, Turkey, South Africa and Taiwan to almost stop buying Iranian oil.

Traders and consultants monitoring Iranian oil exports estimate that sales will drop by 400,000 barrels a day, The FT said.

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